Flood damage - when the rain comes

Flooding is not new to the United Kingdom, but the recent storms, Ciara and Dennis have resulted in a swathe of flood warnings for most of the country, and significant flooding in all areas of the country, including York, large parts of Wales, Worcestershire, Herefordshire and Cambridgeshire.

The impact of flooding on home owners and businesses should not be underestimated.  There is the very obvious emotional cost - the stress of having your home or business damaged or destroyed, of having to find alternative accommodation, of losing family heirlooms.  There is the very real and significant financial cost in the form of damage to property and belongings; the cost of drying out and repairing damaged properties, of replacing belongings destroyed by flood water, and for businesses the interruption to business or the loss of trade.

Whilst the distress of flood damage can never be mitigated, ensuring that your home or business has adequate insurance can go a long way to mitigating the financial impact of a flood.  Whilst flood events seem increasingly common, the availability of insurance does at least offer some protection.  For homeowners even those in high risk areas have the benefit of the new Government and Insurer backed Flood Re Scheme, to ensure flood damage cover is available for all and cover is not prohibitively expensive.  Unfortunately this does not protect commercial businesses, who can still find that flood cover is prohibitively expensive.

Home owners need to ensure that they have adequate building and contents cover, that they understand any limits to their policy and that they do all they can to evidence adequately any claim.  If flooding is imminent do what you can to preserve any contents.  Work with the insurer and an appointed loss adjuster; assist as much as possible by not disposing of damaged property, by keeping or providing receipts for contents, for any emergency repairs or hotel bills.  Listen and taking an insurer’s advice around how to repairing water damage property and do not expect redecorating to be completed quickly - drying out can take many months.

Businesses also have a lot to think about to ensure they are fully protected.  Consider whether the cover is in place to fully protect you, not just in respect of physical damage to buildings and property, but to business interruption and supply chain issues.  Businesses can also take steps to mitigate losses, such as raising stock up high.

But what if you experience flood damage and you find that the insurance you had in place does not cover you adequately or at all.  This will of course depend on whether the issue is one related to underinsurance or the insurer is refusing to cover the damage at all for a specific reason.  If you do not accept the insurer’s decision then there are options available to you.  The insurance policy or booklet you receive with it is likely to set out a complaints procedure.  Follow that, and give the insurer a chance to reconsider.  If you are not prepared to accept the decision they make, then homeowners and small businesses may be able to refer the matter to the Financial Ombudsman, who will consider all the evidence and make a finding. Depending on the circumstances you may wish to refer to the matter to a solicitor to take legal advice.

If you are affected by flooding, or your home or business suffers damage, and you do not agree with a decision your insurer makes, our expert team at Pearson Hards are ready to advise and assist you on all issues arising out of your insurance policy.

Article by Robert Dell, Solicitor in the Dispute Resolution team.